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Trump Launches $500B AI Plan

By January 24, 2025 No Comments

President Donald Trump announced a mammoth AI initiative that could see spending rise to $500 billion. Named Stargate, the project will aim to develop cutting-edge data centres in the US. The joint venture includes OpenAI, SoftBank, and Oracle as the headline partners, though a Middle East entity, MGX, is another financial contributor. With a potential budget that’s huge, it’s no wonder that multiple partners would need to be involved. It was notable that even Elon Musk questioned the funding side of it on X. Yes, he has a fractured (to say the least) relationship with OpenAI’s Sam Altman, but he is reportedly a great pal of Larry Ellison and of course, has buddied up to Trump.

While the plans predate Trump’s tenure and involve no direct government funding, Trump pledged emergency measures to expedite construction, framing AI as crucial for US competitiveness against China. The project reflects a shift in OpenAI’s operations, ending its exclusivity with Microsoft, which remains a key investor. Stargate will initially deploy $100 billion, with the remainder planned over four years. Construction has begun in Abilene, Texas. Oracle shares surged on the news Wednesday, as did Nvidia and a raft of companies in the broader AI ecosystem. Nonetheless, raw material providers are still lagging, and one wonders for how much longer, given the value on offer relative to the sky-high valuations in other areas.

A great name. The ‘Stargate’ created a wormhole that enabled travel to another location in the universe. The original 1994 Sci-Fi movie starred James Spader and Kurt Russell. It became a cult classic and spawned a franchise, including multiple TV series.

 

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